Sapphire Boosts Yields from Blue-Green Algae, Signs Earthrise Deal

In a move that extends the scope of its algal biofuel production, San Diego’s Sapphire Energy says it has modified certain cyanobacteria, also known as blue-green algae, to produce significantly higher yields of “green” crude oil.

In a statement released today, Sapphire says it also has signed a licensing agreement with Earthrise Nutritionals, an Irvine, CA-based producer of blue-green algae that is owned by Japan’s Dainippon Ink & Chemicals (also known as the DIC Group). In 1981, Earthrise established the first commercial blue-green algae farm in the United States. Since then, the Earthrise farm in the Imperial County desert east of San Diego has expanded to 108 acres and now ranks as the world’s single largest producer of Spirulina, a cyanobacteria popular around the world as a dietary supplement. Earthrise also makes blue-green dye used in food-coloring products.

Until now, Spirulina has been grown primarily as a nutritional supplement, according to Tim Zenk, a Sapphire spokesman. But, Zenk says, “We’re invented some technology over the past year or two that has totally changed that.”

Sapphire also sought to partner with Earthrise because it has extensive experience growing cyanobacteria in outdoor ponds on an agricultural scale, Zenk says.

Sapphire showed several years ago that it was feasible to modify micro algae to make “green crude” that could be substituted for petroleum-based crude oil in the refining process. Zenk declined to specify the strain of cyanobacteria that Sapphire has been cultivating. He says the company is describing it only generally as “Spirulina,” an ambiguous term that could be construed to different kinds of cyanobacteria, including some Arthrospira species.

“Adding Earthrise’s prokaryotic  strain (cyanobacteria) to Sapphire’s inventory of prokaryotic and eukaryotic (green algae) strains will enable Sapphire to produce fuel more efficiently at its Integrated Algal Biorefinery now under construction in New Mexico,” the company says in its statement today.

Author: Bruce V. Bigelow

In Memoriam: Our dear friend Bruce V. Bigelow passed away on June 29, 2018. He was the editor of Xconomy San Diego from 2008 to 2018. Read more about his life and work here. Bruce Bigelow joined Xconomy from the business desk of the San Diego Union-Tribune. He was a member of the team of reporters who were awarded the 2006 Pulitzer Prize in National Reporting for uncovering bribes paid to San Diego Republican Rep. Randy “Duke” Cunningham in exchange for special legislation earmarks. He also shared a 2006 award for enterprise reporting from the Society of Business Editors and Writers for “In Harm’s Way,” an article about the extraordinary casualty rate among employees working in Iraq for San Diego’s Titan Corp. He has written extensively about the 2002 corporate accounting scandal at software goliath Peregrine Systems. He also was a Gerald Loeb Award finalist and National Headline Award winner for “The Toymaker,” a 14-part chronicle of a San Diego start-up company. He takes special satisfaction, though, that the series was included in the library for nonfiction narrative journalism at the Nieman Foundation for Journalism at Harvard University. Bigelow graduated from U.C. Berkeley in 1977 with a degree in English Literature and from the Columbia University Graduate School of Journalism in 1979. Before joining the Union-Tribune in 1990, he worked for the Associated Press in Los Angeles and The Kansas City Times.